David Solomon, CEO, Goldman Sachs, speaking at the World Economic Forum in Davos, Switzerland, Jan. 23, 2020.
Adam Galacia | CNBC
Goldman Sachs released new financial targets for higher returns at its first-ever investor day.
The company said Wednesday in a release that return on tangible common shareholders’ equity will exceed 14% within three years. Last year, the firm posted ROTE of 10.6%, brought down in part by $1.24 billion in legal costs.
Goldman said that in the longer term, returns would be in the “mid-teens or higher” as its nascent businesses, including in retail banking, mature. Those return targets are similar to those given this month by its rival Morgan Stanley.
“We are resolute in fulfilling our purpose of putting capital and ideas to work to evolve organizations, accelerate global economies and amplify personal prosperity,” Solomon said in the release. “We believe that this deep commitment, combined with the talent of our people and our risk management culture, positions us to deliver higher, more durable returns for our shareholders over the long term.”
Shares of the bank climbed about 0.7% in premarket trading.